Euro Woes - Ainslie Bullion News

Posted | 04/06/2014 / Views | 2103
Back to News
Next Article

Just one day before the Euro Central Bank (ECB) meets, inflation figures again disappointed overnight to the downside and bond yields reached their lowest level “since the Napoleonic Wars”.  Whilst unemployment dropped 0.1%, it still sits at 11.7% overall and 23.5% for people under 25.  The region continues to slide towards the kind of outright deflation that dogged Japan for 20 years and has seen them implement the most aggressive monetisation the world has seen (with limited effect and massive debt accumulated).  

Many expect an announcement tomorrow of negative deposit interest rates and the commencement of OMT, Euro’s version of the US’s QE money printing program.  Either way, gold and silver usually thrive in either outright deflation or the in high inflation money printing inevitably causes.